Japan steelmakers shrug off U.S. tariffs in earnings but warn on automobile duties

TOKYO (Reuters) - Japanese steelmakers reported little fallout in their first-quarter earnings from the U.S. import tariffs on steel, but they all voiced growing concerns over possible U.S. duties on automobiles which could hurt a wide range of Japan’s industries.

U.S. President Donald Trump ordered a national security probe into imports of automobiles in May. Similar national security investigations were the precursor to the imposition of import tariffs of 25 percent on steel and 10 percent on aluminum in March.

Nippon Steel & Sumitomo Metal (5401.T), Japan’s top steelmaker, on Thursday reported its recurring profit fell 19 percent in the April to June quarter from a year earlier, weighed down by lower appraisal gains in raw materials inventory and rising costs of secondary materials.

But it forecast a profit gain for the year to March 31 as it plans to boost steel output to meet local demand in automobiles and construction as well as raise product prices to pass on the rising costs of materials such as manganese and zinc.

“Demand for automobiles, including SUVs for North America and electric vehicles for Europe, are strong,” Nippon Steel Executive Vice President Katsuhiro Miyamoto said, adding that demand for industrial machinery and construction are also solid.